Central Bank of Nigeria Governor Mr. Godwin Emefiele has said that Nigeria is expected to receive a total of $24 billion foreign exchange inflow annually as remittances from citizens in diaspora, following the introduction of Diaspora Foreign Exchange Remittances Policy by the apex bank. According to Emefiele, the target is based on the inflows accruable to countries that have similar demographic features with Nigeria, such as Pakistan, which often receives about $2 billion monthly from its citizens in diaspora.
According to him, “I’m aware from the data available that, for instance, Pakistan, even in the midst of COVID-19 receives $2bn monthly from inflows from Pakistanis in diaspora. “If Nigeria is able to receive even if it is just $1billion monthly or moving close to $2 billion monthly, I’m so certain you all know what will happen to the exchange rate in Nigeria.”
Emefiele said that consistently meeting the monthly target of $2 billion would reduce so much pressure on the Deposit Money Banks from calling the CBN to fund their commercial operations.
Diaspora Foreign Exchange Remittances Policy takes effect, December 4, 2020. To block any possible loophole or sabotage, the CBN had ordered all banks to close all their Naira General Ledger, through which the naira remittances were being carried out. The target of annual remittance inflow of close to $24 billion will help improve the country’s balance of payment position, reduce her dependence on external borrowing, and mitigate the impact of COVID-19 on foreign exchange inflows into the country. The policy change would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients of remittances would receive a market-reflective exchange rate for their inflows. All beneficiaries shall have unfettered access and utilization to such foreign currency proceeds, either in FX cash and/or in their Domiciliary Accounts, in line with the extant CBN circular TED/FEM/FPC/ GEN/01/010.
